There are many perks to becoming an entrepreneur. For one, you don’t always have to reinvent the wheel. Sure, you could be a part of the next big thing, but there can be something rewarding and humbling about just doing whatever you want to do. From car washes to food carts, there is a large array of choices. One of those choices can be owning a laundromat. This article will explain what it means how to make money at a laundromat and how much it costs to start one.
Everyone needs clean clothes so it is a good business choice. You could set up in an area for people that need their clothes washed like by college apartments. Not to mention, a laundromat can bring in anywhere from $15,000 to $300,000 in profit. That sounds like a pretty good idea! How hard can it be?
Let’s get started!
How Much Does A Laundromat Cost?
Owning and maintaining a laundromat is a lot more money than it sounds. Regardless of whether you are a startup company or buying into an established one, an entrepreneur will have to fork over a lot of money. Consider your financial resources before starting this endeavor. On average, an entrepreneur can spend between $200,000 to $500,000 for just an average laundromat.
You may wonder why it would cost so much. Well, like any business, there are a lot of guidelines and rules as to how you handle your business in that industry. For example, what kind of laundromat will it be? Will it be brand new or will you purchase one that already exists?
Buying into the existing business has its advantages. For instance, if you buy an existing laundromat, then it is already running efficiently and all you have to do is maintain it then. That way you don’t have to sink money into buying, renting, renovating, etc your own laundromat.
When it comes to an existing franchise, you need to have liquid cash of around $75,000 to $300,000. Then, you have the ability to have assistance from the business for any support you may need.
But, if you need money for the business, consider partners, investors, and loans. For a laundromat, you can invest in equipment loads where you don’t need to be in the business in order to rent equipment, you can do it whenever. That makes it easier for laundromat entrepreneurs to manage their budgets.
Property
The one thing that every laundromat needs is a location. It can’t be done without it. But, before you can have your building, you need to know where it is going to go. How does one solve that?
A good start is to do market research by looking at existing laundromats. The point of all the research is to gather info and insight into what you need for the location of your laundromat. This all depends on the market and where you live. So that means that prices will increase or decrease depending.
Once you feel comfortable with a location for your laundromat, you need to find a space there for your laundromat. You need to ensure that it will have the space that you need to operate your business. The cost of purchasing or renting a space will also depend on the market and location. So be sure that you do plenty of research or else your business will fail before it can begin.
Utilities
An important part of the laundromat is the utilities and equipment that are going to be apart of the building. From the machines to the plumbing and lighting, everything needs to be up to code to ensure a successful laundromat.
Make sure you do the research to know what are the proper lines for your infrastructure. This will determine a lot of your budget.
Equipment
When it comes to a laundromat, the washers and dryers are the stars of the show. A washing machine can cost up to $1000 while front-loading machines can be between $700 and $2000 depending on the model. The dryers can cost several thousand dollars as well.
There is also what kind of system you want to use. Will you have the public use coins or will you opt for the card route? Note, the card route is extremely expensive and can cost over $50,000. Meanwhile, the card machines can range from over $500 to nearly $10,000.
There is also the cost of the water-heating system which can cost thousands of dollars. Every laundromat is different so you need to consider what else you want there. For instance, a laundromat can have the following:
- Laundry Detergent
- Fabric Softener
- Laundry Carts
- Furniture
- Office Supplies
- Vending Machine
Marketing
The thing that will get people to your laundromat is marketing! If you buy into an existing franchise then you already have the name on the building. Name recognition will get you far! If you starting out new, then you need to get your name out there.
You want to spend almost 10% of your revenue on marketing and advertisement. It is important to understand how marketing works as well as what your demographic is going to be. Consider ways to retain your customers like business emails and rewards systems.
Conclusion
Running and managing a laundromat is a lot of work. It can cost a lot of money, but it is really like any other business. You need the customers, the location, and the resources to provide the customers with a product or service. How you get those things and how you go about them is up to you.
Don’t go rushing into these things, otherwise, you won’t be the successful entrepreneur that you were dreaming about.
